A humorous look at the companies that caught our eye, for better or worse, this week.
Whole Foods Market
WFM (Nasdaq)
Nov. 7, 2014 close: $46.81 (U.S.)
up $7.48 or 19% over week
I bought groceries at Whole Foods once – the bank ended up repossessing my house. Plenty of other people can afford to shop there, though, judging by the retailer’s quarterly results. Lifted by new store openings and 3.1-per-cent growth in comparable sales, the company posted better-than-expected earnings and gave a bullish forecast for 2015. Investors are stuffing themselves with artisan cheese, gluten-free bread and organic beef.
Linamar
LNR (TSX)
Nov. 7, 2014 close: $65.98
up $8.41 or 14.6% over week
Fun fact: “Linamar” was derived from the names of founder Frank Hasenfratz’s daughters Linda and Nancy and wife Margaret. (Tip: Don’t try this if your children are named Craig and April).
Here’s another fun fact: Shares of the Canadian auto parts maker soared after it posted a 53-per-cent jump in profit and 14-per-cent increase in revenue for the third quarter, driven by a strengthening automobile market. Investors are enjoying the ride.
Bank of Nova Scotia
BNS (TSX)
Nov. 7, 2014 close: $67.48
down $1.54 or 2.2% over week
You’re richer than you think? That’s a good one. Scotiabank shareholders and employees are poorer than they think after this week’s selloff. Even as it’s been raking in billions in profit, Canada’s third-largest bank plans to slash 1,500 jobs – including about 1,000 domestically – and take $451-million in fourth-quarter charges on its operations in Canada, Venezuela and the Caribbean. If this is how it reacts in the good times, wait until the next recession.
Priceline Group
PCLN (Nasdaq)
Nov. 7, 2014 close: $1,094.61 (U.S.)
down $111.60 or 9.3% over week
Priceline lets you book trips to all sorts of exotic destinations. Too bad shareholders can’t even afford a room at the Super 8. Hurt by a sluggish European economy and weaker euro, the online travel agent – which owns Priceline.com, Booking.com and Kayak.com – projected fourth-quarter earnings well below analyst estimates. With Priceline’s forecast fuelling concerns about the holiday season, the stock’s been grounded.
Sears Holdings
SHLD (Nasdaq)
Nov. 7, 2014 close: $42.81 (U.S.)
up $9.94 or 30.2% over week
Business quiz!
Shares of Sears Holdings surged this week because:
a) Consumers have had it with the ease and convenience of online shopping and are flocking back to department stores;
b) Disney plans to purchase the company and open a chain of urban theme parks;
c) Sears is considering a plan to form a real estate investment trust with hundreds of stores that it would sell and lease back.
Answer: c.